fbpx
Articles
8.02.2023
290

Top 5 Reasons Why Brands Should Maintain MSRP/MAP Control

Soaring inflation, which is expected to reach double digits in many European countries in the coming months, is driving living standards down and making customers more price conscious.

Rising costs will inevitably force brands to raise prices in the short to medium term. At the same time, online retailers can be more flexible in pricing, attracting customers with discounts on one item while earning money on another.

As a result, in highly competitive segments, without monitoring and control, the total number of MSRP deviations will increase.

MSRP and price wars

MSRP and marginality of goods

MSRP and brand reputation

MSRP and omnichannel

MSRP and trust from sellers

MSRP monitoring is simple

Why should manufacturers control the RRP?

MSRP minimizes the risks of price wars

E-commerce is fiercely competitive. Pricing under such conditions is like a chess game, where every action by one seller is inevitably followed by a reaction from another. Thus, when one retailer offers a discount, it is quite possible that its direct competitors will react in the opposite direction. So a price war can turn into a price cascade in which brands are left wondering how, in just a few days, the cost of all their products fell to wholesale or, in some cases, even lower.

In the future, when it becomes unprofitable for retailers to sell products with a minimum profit (or without one at all), sales volume will fall. In the medium term, the price collapse below the MSRP does not benefit the retailer, the distributor, or the manufacturer. MSRP establishes a price floor and helps brands protect product margins for all parties.

If you plan to stay in the market for a long time, don’t let price wars kill your brand’s appeal to retailers — implement MSRP monitoring.

MSRP control is the best way to protect product margins

If you don’t maintain MSRP control, partners can sell your products for zero profit or even in the red. They attract customers with “best deals” and receive a margin from cross-selling accessories with a higher rate of profit.

If you want to maintain the product margin, make sure that partners comply with the MSRP.

MSRP helps uphold the brand’s reputation

If you don’t control the MSRP, sellers have more room to compete on price than on service. Why improve the customer experience when you can simply price below the competition?

Buying your product from a “lazy” seller who does not invest in the service quality can lead to a negative experience that will somehow be associated with your brand. This inevitably affects the product’s perception and not just the online store where it was purchased.

When a customer is looking for the best deals and sees that all websites have the same price, he will go to the seller he knows and trusts. This means that your customers will be less likely to get “unforgettable” experiences from poor service.

If you want to provide the best shopping experience, you need to help raise the service level and control the MSRP.

MSRP helps develop omnichannel retailing

The recommended retail price benefits not only the manufacturer but also the sellers because it promotes competition with service, not price. All market players win if they do not lose profits due to dumping. This is especially true for offline sellers and those online stores that find it difficult to compete on price with e-commerce market leaders and marketplaces.

Assume a marketer in an offline store notices that online stores regularly sell your product at a lower-than-recommended price, i.e., at a price that they absolutely cannot afford due to high overhead costs. In this case, he is likely to be less enthusiastic about using precious shelf space for your products. As we know, consumers compare prices offline and online.

MSRP control equals a level playing field for all partners, big and small, online and offline. If your product is available in many sales channels, it will likely generate more sales. Therefore, it may be part of your omnichannel strategy.

The MSRP control increases your brand credibility

Retail partners who want to play the long game really want to work with the brands that control MSRPs. They know that if any of their competitors dump and start price wars, you will take care of it. They can alert you to dishonest competitors’ actions. With the help of an effective monitoring tool, you can track who:

  • was the first to depart from the suggested retail price;
  • systematically pursues a policy of dumping;
  • bypasses the MSRP, changing prices at night or on weekends.

If you are building a responsible partnership, you should not only introduce the MSRP, but also effectively control it to provide fair conditions for all partners.

MSRP monitoring may be easy

MSRP control is one of the key tasks for building a strong brand and protecting its competitiveness and marginality. However, this process must be regular and, frankly, can take a long time for marketers if carried out manually.

We offer an alternative. This is a useful tool that handles all routine data collection tasks for you. Using the Pricer24 service, you can:

  • conduct a market analysis for a specified time period to determine which retailers have the most deviations, as well as how frequently and to what extent they occur;
  • quickly identify which partners deviated from the MSRP first;
  • find out at what prices your products are sold at night and on weekends;
  • see not just the facts of deviations, but also their size, finding problem areas that should be dealt with in the first place;
  • export product lists with MSRP deviations to Excel;
  • set up automatic sending of letters to your email or retailer when deviations are detected.

Are you looking for a functional, easy-to-use solution? Just contact us! We will provide you with a demo to show all the advantages of MSRP monitoring in Pricer24.

Take a consultation
  • Market analytics
  • Price parsing
  • Product visibility
Take a consultation
  • Market analytics
  • Price parsing
  • Product visibility
Share it:

Get expert advice

Submit your application to see the demo and make sure that the service fits your needs



    *By submitting this form, you agree to receive marketing emails

    Privacy policy

    Your privacy is very important to us. We want your work on the Internet to be as pleasant and useful as possible, and you quite calmly used the broadest range of information, tools and opportunities that the Internet offers.

    The personal information of the Members collected at the time of registration (or at any other time) is mainly used to prepare the Products or Services in accordance with your needs. Your information will not be transferred or sold to third parties. However, we may partially disclose personal information in special cases described in the “Consent with the mailing”

    What data is collected on the site

    At voluntary registration on reception of dispatch you send the Name and E-mail through the registration form.

    What is the purpose of this data?

    The name is used to contact you personally, and your e-mail for sending you mailings of newsletters, news, useful materials, commercial offers.

    Your name and e-mail are not transferred to third parties, under any circumstances, except for cases related to the compliance with the requirements of the law.

    You can refuse to receive mailing letters and remove your contact information from the database at any time by clicking on the unsubscribe link present in each letter.

    How this data is used

    With the help of these data, information on the actions of visitors on the site is collected in order to improve its content, improve the functionality of the site and, as a result, create high-quality content and services for visitors.

    You can change your browser settings at any time so that the browser blocks all files or notifies you about sending these files. Note at the same time that some functions and services will not be able to work properly.

    How this data is protected

    To protect your personal information, we use a variety of administrative, management and technical security measures. Our Company adheres to various international control standards aimed at transactions with personal information, which include certain control measures to protect information collected on the Internet.

    Our employees are trained to understand and follow these control measures, they are familiarized with our Privacy Notice, regulations and instructions.

    Nevertheless, despite the fact that we are trying to protect your personal information, you too must take measures to protect it.

    We strongly recommend that you take all possible precautions while on the Internet. The services and websites that we organize include measures to protect against leakage, unauthorized use and alteration of the information we control. Despite the fact that we are doing everything possible to ensure the integrity and security of our network and systems, we can not guarantee that our security measures will prevent illegal access to this information by hackers from outside organizations.

    If this privacy policy is changed, you will be able to read about these changes on this page or, in special cases, receive a notification on your e-mail.